09 May 2022
WE HAVE TAKEN CASH CREDIT FACILITY FROM THE BANK AND I HAVE SHOWN CASH CREDIT BALANCE AS OPENING BALANCE CREDIT IN TALLY FY 2022-23 FOR MONTH OF APRIL I HAVE PASSES FEW JOURNAL ENTRIES IN TALLY i:e FOR MAKING PAYMNET TO SUPPIER ( SUPPLIER ACCOUNT DEBIT AND CASH CREDIT ACCOUNT CREDIT )
AND FOR WITHDRAWAL CASH ACCOUNT DEBIT TO CASH CREDIT ACCOUNT
IF SUPPOSE I HAVE TAKEN CASH CREDIT LIMIT OF 1,00,000 FROM BANK AND WHEN I HAVE A PAYMNET TO OUR SUPPLIER I WILL DEBIT CREDITOR ACCOUNT BY Rs 10000 AND CREDIT CASH CREDIT ACCOUNT BY Rs 10000
IN ABOVE CASE CASH CREDIT BALANCE WILL INCREASE ( 100000 CASH CREDIT APPROVED BY BANK ) 10000 ( PAID TO CREDITOR)
TOTAL SHOWING IN TALLY CASH CREDIT BALANCE AS 110000 . WHAT I UNDESTAND THAT WHEN WE USE CREDIT CASH THE AMOUNT UTILISED SHOULD DECREASE BUT HERE IT INCREASING
AND ALSO LET ME KNOW WHERE CASH CREDIT AND OD ACCOUNT TO BE SHOWN IN BALANCE SHEET UNDER WHICH HEAD
09 May 2022
Ok but what if when we make payment to creditor we will credit cash credit account and since we are showing cc as credit balance passing more journal entry to cash credit will increase credit balance pls clarify
10 May 2022
Ok but when my cash credit balance shows increase by 10000 that’s is Total 110000 credit balance in tally Does it indicate that my balance Approved 110000
Sir can you pls help me with example M still confused
10 May 2022
10,000 is cheque issued but not presented for payment before the cheque is presented make 10000 deposit in cash credit account. It's not approved balance but it's book balance.
CAclubindia
